New York–based hedge fund Marathon Asset Management made a profit of around $30 million in just a few days, after a well-timed bet on Credit Suisse Group AG bonds paid off, according to a report by Bloomberg.
An anonymous Bloomberg source revealed that Marathon accumulated around $150 million worth of bonds in Credit Suisse’s senior operating company (OpCo) at discount rate, days before the bank made its offer to buy back the debt at an inflated price.
The stricken bank was subsequently acquired by rival UBS in a Swiss government-backed rescue deal, but the bonds bought by Marathon were tendered back by Credit Suisse last week in the mid to high 90 cents on the dollar range, generating a sizeable profit for the hedge fund.
